*(Via Washington Post) — T-Mobile USA and Metro PCS will merge, the companies announced Wednesday, after getting approval from both company boards.
In a statement, the companies said they will combine their efforts to roll out a high-speed 4G LTE network.
The deal, T-Mobile hopes, will give the new venture the “expanded scale, spectrum and financial resources to aggressively compete with the other national U.S. wireless carriers.”
MetroPCS shareholders will receive $1.5 billion cash and 26 percent ownership in the new venture. T-Mobile USA parent company Deutsche Telekom will have majority control with 74 percent of the stake.
“We are extremely pleased to announce this transaction with MetroPCS, which enhances Deutsche Telekom’s position in the expanding U.S. wireless market,” said René Obermann, the German carrier’s chief executive officer. “The T-Mobile and MetroPCS brands are a great strategic fit – both operationally and culturally.”
Both companies are known for offering cheaper plans — MetroPCS is a no-contract wireless carrier — and have a strong base in the lower end of the market. More importantly, T-Mobile and MetroPCS have rights to LTE spectrum in the same band — meaning that it will be easier for them to work together as they move their networks forward.
Read/learn more at Washington Post.
Want to read more articles like this one? Subscribe to EURnewsletter.
Got A News Tip or Video You Want to Share? Contact us HERE.
- OWN Staff Blindsided by Exit of Oprah’s Longtime Confident Sheri Salata (Report)
- FoxNews.Com Pulls Comment Section of Malia Obama Story After Racists Take Over
- Pres. Obama Drinks Filtered Flint Water to Show It's Safe (Watch)
- Blake Shelton Curses Out Beyonce’s Country Haters (Watch)
- Report: Janet Jackson Pregnant With First Child at Nearly 50
- Radio Stations Nationwide to Simulcast Prince’s ‘Nothing Compares 2 U’ on Wed
- Woman Stabs Boyfriend For Not Getting Her a Valentine’s Gift (Video)
- Attorney for Prince's Addiction Specialist Explains Pills Found in His Medical Bag (Watch)
- The 15th Annual East Coast Black Age of Comics Convention in Philly
- Cynthia Bailey, Stacey Dash Cast in Syfy’s ‘Sharknado: The 4th Awakens’
- Discover More Stories on EURweb: Click Here